--%>

Multinational corporations

Explain Multinational corporations (MNCs) and what the economic roles do they play?

E

Expert

Verified

Multinational Corporation (MNC) is defined as the business organisation established in one country which has sales and production operations in various other countries. Certainly, some MNCs have operations in several different countries.  MNCs gain financing from the money centres around the world in several different currencies in order to finance their operations.  Global operations force the banker’s office to form the international banking relationships, to effectively manage foreign exchange risk and to place short-term funds in several currency denominations.

   Related Questions in Financial Accounting

  • Q : International diversification Evaluate

    Evaluate the home country’s multinational corporations as a tool for the international diversification.

  • Q : Financial institutions & Economic growth

      It started with the US sub-prime mortgages on housing loans, which became worthless when home owners defaulted on their loans. The housing market promptly collapsed, wiping out Wall Street's revered investment banks and pull

  • Q : Political risk in capital budgeting How

    How would you include political risk within the capital budgeting process of foreign investment projects?

  • Q : Hedgers and Speculators Explain hedgers

    Explain hedgers and speculators are two types of economic agents required for a derivatives market to function.

  • Q : China emerged as the important

    Explain facts that China has emerged as the second most imperative recipient of the FDI after United States in recent years?

  • Q : Categories under budgets are divide

    Write down the chief categories under which budgets are divided?

  • Q : Fundamenetal Issues on Management

    1.  Somerset Ltd manufactures components for the motor industry. In one of its workshops it has three workers, Joe, Jack and Jonny, who at any one time work on batches of the same component. The standard time allowed to produce one unit is one hour. The workers rate of pay is

  • Q : Equity and social exchange theory What

    What is the difference between the equity theory and the social exchange theory ? Define both the theories in brief.

  • Q : Cash flows from operating activities A

    A financial analysis tools that measures the need for financing. The formula is the cash-flow from operating activities divided by the cash paid for long-term asset. Cash paid for long-term assets can be found on the statement of cash-flow, in the investing-activities

  • Q : Stages in the life cycle of a family

    There are seven typical stages in the life cycle of a family with children. Fully explain and give an example to describe each of those seven stages.